Hello,
As 2025 draws to a close, the year reinforced an old lesson: patience and discipline tend to be rewarded. Despite a steady drumbeat of unsettling headlines and economic worries, markets proved more resilient than many expected. Returns came from a wide spread of assets and regions, and staying invested with proper diversification held up well. Volatility was part of the journey, but the headlines rarely told the whole story.
In equities, European stocks outperformed US equities by one of the widest margins in decades in euro terms, a notable break from the long-term pattern. The combined market capitalisation of the so-called Magnificent 7 reached around $18 trillion, larger than the combined GDPs of the United Kingdom, France, Russia, Canada, Italy, and Brazil.
Bonds had a mixed year. Long-dated sovereign yields hit levels not seen in over 16 years, with markets pricing in persistent inflation risk, fewer aggressive rate cuts and concerns about debt levels. Gold prices climbed over 65% in 2025, on track for the best annual performance since the late 1970s, hitting an all-time high above $4,000 per ounce in October.
As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.
If you’d like to discuss any of this in the context of your own portfolio or pension, book a consultation or call 01 253 3242.
Smart Financial Insurance Limited trading as Smart Financial is regulated by the Central Bank of Ireland. Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up.
